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tv   Keiser Report  RT  January 17, 2018 10:00pm-10:30pm EST

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president trump says it's very possible the north korean crisis can't be resolved peacefully despite the two koreas agreeing to compete under one flag at the winter olympics. the u.n. agency for palestinian refugees slams america's decision to cuts the organizations funding horning it's the worst crisis in its history thus. there are russian agents in his very own parliament right now. lies and lies and lies are being told throughout europe and we hear the same story over and over again talk about russia dominates in the european parliament's with members clashing over alleged threats and fight news coming from moscow. you can go to our calling
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for more on these and other stories next on our international it's the guys a report if you're in the u.k. or island get ready for boom bust. i am asked. this is because reports. there's max talk about ilan musk but first i want to talk about a little story that has happened to me. over the past few days because i was waiting for fed ex package and this fed ex package was they fail to deliver over and over and over again and i went to twitter and i said why is fedex so horrible and why do we always have a good experience with u.p.s.
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u.p.s. is always really nice we see them in our neighborhood delivering all these amazon packages and blah blah blah and it turns out people said u.p.s. is fully unionized and they all have benefits and you know stable you know schedules and stuff like that all the fedex guys are. their private contractors they have no rights no negotiating power or anything and i visibly saw that in my own experience i had no idea here's the headline for mother jones from two thousand and ten it says fed ex versus u.p.s. on unionization there was actually a big battle or the fed ex people were trying to get unionized because they fall under different labor rights relations because they started as an aircrew air delivery service rather than ground delivery service they can't so i truly had no idea that we have been euthanized and fed ex not but in my own experience it was just this like complete nightmare we had a an experience last year with fed ex as well you who member that they give the
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last a package so just my own personal experience without knowing anything just an interaction with these two corporations the experience. compared to what is the fact for the workers showed up on my own personal experience with them that's real anecdotal evidence on the ground research and what it's so if you gleaned from this i gleaned that how your workers feel genuinely impacts your brand whether you know the shareholders at fed ex of course want the company to maximize profit get as much profit out of every single worker pay their workers as little as possible but when you're interacting on it you know you're the person here fed ex sign this you know and you're seeing this horrible interaction you feel like i don't want to use fed ex i'd rather pay twice as much to just use u.p.s. because why would i want something an interaction like that why would i want an
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experience like that and people these corporations that don't understand how horrible it is to have to deal with their frontline staff if it's not trained if it's not well if you go into some of these big d.i.y. shops for example and you ask one of their customer service reps for information about some plumbing supplies and they have no idea what the anything about what they're supposed to be an expert on you know these sort of things add up but i think fractures listed and u.b.s. is not really not so see this is the fact that german companies are so good as they don't list shareholder shareholders demand you destroy their company that's the way things are now they demand that you hollow it out and and destroy all value because they want it now they don't want something in fifty years time they want it now so that would make sense i guess i can't believe it's not listed so. musk's company is of course listed tesla must needs to make
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a bold call on tesla as model three before it is too late production hell as elon musk calls it has reached a new level of blazing discomfort at tesla last. the company reported that had fallen well short of his delivery goals for the model three the thirty five thousand dollar car that is supposed to transform tesla from a nice player to the dominant force in the new age of electrified automobiles so they did manage to deliver one hundred thousand cars in twenty seventeen which is a new high for them but we're going to go into how comparing them to the other big auto companies well it's an interesting kind of model he has there because he's using the pre-sales on the on the the model three and these cars to kind of keep the company afloat in terms of cash because they burn a lot of cash so he's making a bet that eventually these two things work out and he starts to have some organic growth and which is not a bad bet to make i mean i work for jeff bezos you lost money for many many years
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building their brand building their franchise and then it started to work for him he should just do and i see oh this is like tesla coil in one day you might get a point you know people throw billions of dollars that i.c.a.o. is for products that are even more vague at least he has like actual real example of what a tesla model three will look like and he had to livered some beyond what he said you know he was meant to but i'll show you that chart of comparing tesla to other auto manufacturers and that is the market cap versus auto sales so g.m. is the largest market cap on this with fifty point eight billion then four to forty three billion chrysler fifteen point seven billion tesla forty nine billion but you can actually see the amount of sales g.m. has to sell three million cars for that fifty billion tesla's only delivering seventy six thousand for their market cap which is equals to g.m. so i pay out for a growth story in this potentially huge growth story so you multiples are expanding
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you know people get down on tesla because they take the government subsidy money but somehow they don't get down on the other big three car companies even though they've been bailed out. by government money so whether it's a government bailout or a government subsidy that's still government money i don't know why tesla gets all the bad press but actually like you said they buy a growth story that the growth isn't all that much but it is a mystery their story is a mystery like that whole space x. launch that lost that maybe lost the mystery satellite some sort of mystery payload from the u.s. government and tesla says it's their mission was accomplished so that's all a mystery what happened with space x. last week but in terms of like comparing this initial coin offerings in the crypto space study found that the less information you actually gave if you had no product no example of what your product was for your initial claim offering you actually got more like the investors value you hire as soon as you had any
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products or example of your technology investors to want anything to do with it because it was too real world it wasn't as is huge is their imagination but it's true in all stock markets you know biotechnology companies that have absolutely no technology but they just a white paper or some academic study suggesting that there could be something biotechnological wonderful if they got a bunch of money raised billions of dollars companies that have a very simple numb nuts business metal benders who simply manufacture you know parts car parts they have a very low valuation because it's very predictable and very well known but their cash. cows if you will this is the type of stuff that warren buffett tends to buy are predictable cash cows and that's his style of doing business and then you have the moon shot look tesla is a moonshot disrupting the auto industry he might do it and therefore he would be
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worth more than all three combined or he might fail in which case you admit it worth zero like he'd go the way of enron but that's what capitalism is all about so speaking of cash cows comparing him so remember he basically tesla and. g.m. have equivalent market capitalizations. but g.m. sells many many multiple times more cars so they compare it to more of the balance sheet and the data between these two companies the model three is turning into a slow motion catastrophe that's going to push tesla's capital structure beyond the breaking point the math a simple tesla is spending as much as general motors every quarter about one billion dollars to produce and sell a fraction of the vehicles that g.m. does g.m. is also turning that invested capital into steady profits while tesla in the third quarter of twenty seventeen posted the biggest loss and its history g.m. has a twenty five billion dollar war chest chest only has enough cash to operate through
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twenty eighteen i.b.m. and dell with a g.m. and ford of the day people are comparing look at your sales compared to their sales and were doing horribly and he stayed loyal to his vision of whatever their vision was and eventually it might have taken twenty years but the same with tesla and twenty years it might eventually it might take twenty years for them to realize the same sort of apple like you know i never see a dell computer anymore back in the early ninety's michael dell told apple computer to shut their doors and shut em to shut down the way i don't know that they they are irrelevant they had failed they were never going to make it. and now course dell is an also ran so that's what happens when a visionary matches the times in which he lives with a product that people want and you have an explosion in market capitalization like apple computer tesla could could be
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a big wonder could you not let me also compare one more thing and then i have a statement to make about this an assessment and analysis to make about this so to make matters worse tesla striving and failing to. build a pretty simple vehicle the model three is basically an electric condo cord and honda without noticeable effort builds and sells over one hundred thousand of those every single year in the u.s. alone to me it kind of seems like the sort of tension and stress and angst in the press toward steve jobs back in the eighty's at apple that he was doing you know ron he's like look at i.b.m. look at dell they're taking off with this whole market you don't know what you're doing what is this vision you have you just don't know what you're doing this is that you know and he was kicked off the board of our poll he was you know the same sort of attention i well what he's doing with this company apple and of course you know we all know the success that apple has become one of steve jobs as
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a model in silicon valley that you know is going to fit into steve jobs shoes by coming up with innovative products you know the electronic gadgets market is a little bit different in the car business because the car businesses you know you kind of bound by the highway system and you're bound by the whole infrastructure that is the automotive industry in the lobbying of the automotive industry so it's a bit difficult to be disruptive in that industry in a way he's going to open up his charging stations with one nine hundred fifty style burger and shake joints with servers on roller skates ok that's that's an idea that might take off that might be a new like starbucks like the third place that people go to to have an experience that might work i mean as an innovator and he actually does think he's revolutionizing the model he sees himself as henry ford like character henry ford revolutionized the production model of automobiles and this is what according to this article also sees that this is
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a third step in the production of vehicles must his dream is to massively automate the model three assembly and take advantage of the simpler engineering requirements of electric vehicles it's a noble dream. tesla should continue to pursue it but at this point mosque is asking all those model three reservation holders to patiently await tesla's ability to reinvent manufacturing they've become unwitting participants in a science project again going back to one nine hundred eighty s. steve jobs it did take him a while to realize what he was trying to execute in his mind he's not a technologist he wasn't a code writer he couldn't do all the stuff fast enough once he met johnny ive or whatever they they seem to have some sort of like. you know explosion in their ideas it finally came to fruition but at that time nobody was very patient with steve jobs back in the eighty's and you remember i'm sure well fascinating. unwittingly you will stay tuned for the second hour of this program right after
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this break. but rather stand here from us tonight. from what. i know that i know are more trouble than there are rather you know stuff that are for america as a. family and that compared to my next question then you can keep an eye on what i have through the channel for truffle is not good and. then i'm all in my machine. and mind. the
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hey how you want to do it. because it's whole food place choice here you have them and they are trying mysterious. someone else for them after the forefront mr hates it for jim and lawyers for hope that are for him and for. the money. here's what people have been saying about redacted the night with us actually just full on awesome the only show i go out of my way to you know a lot of the really packs a punch. yam is the john oliver of hearty americans do the same we are apparently better than the blue. sea people you've never heard of love redacted tonight president of the world bank so kate was really. serious when he sent us an e-mail.
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welcome back to the kaiser report imax kaiser's i'm now do turn to time since local may runs the public citizens energy program and serves on the c f two series energy committee tyson welcome back always great to be here max now the new york times is quoting you they say about power companies got a tax cut but will the the bill reflected you're quoted in this tell us more about these tax cuts and will our energy bills be impacted so you know congress and the president put into law this awful tax bill that was rushed and you know behind cover it are going to go to qualify this awful in what way it's massively expensive and it goes to huge multinational corporations that aren't necessarily going to be creating jobs or creating value for the u.s. economy but creating massive benefits for their preferred shareholders think this
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through how to get this through this new fight this idiot this guy who nobody thought to do anything somehow managed to get this massive tax cut through oh i think they did it despite trump and his repeated tweeting on the subject the congressional republicans found a new tactic to devise sweeping complex legislation behind closed doors unveil it with as a little public scrutiny as possible so that opponents to the sweeping legislation have little time to mobilize to fight bad legislation so we saw that on other issues that failed with this corporate tax bill there were so many powerful corporations with their hands out in line to get benefits pushing hard on congressional republicans and other variable checks and balances system of our federal government has found it is failing right now i think that trump is ushering
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a new era of it's an institute. failure or a temporary fare failure in other words is the character of the way legislation is made and passed in washington now been co-opted entirely by a corporate agenda it's taken a few decades to get there through the so-called neoliberal washington consensus type agenda or is this are you suggesting that this is more of a temporary situation what are your thoughts oh i think our political system is prone to such takeover and abuse it's a question of leadership in the past we've had enough leadership on a bipartisan basis that that there were enough people to stop these kinds of things on a consistent basis what we're seeing now is a complete absence of leadership i'm not an overly partisan person but what i'm seeing out of the republican leadership right now is no concern whatsoever for the welfare of their actual consist of constituents who have brought on welfare into bar lago and said hey everybody just got
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a lot richer ok he wanted this and it got through he's demonstrating leadership that's what a leader does he got his agenda through so what he said is a lack of leadership if you're referring to the democrats well i think the democrats did what they could but they just don't have the numbers right now but i don't think leadership is succeeding on pushing bad policies into law i think leadership is recognizing that you've got to look out for the least among us in our society and there's nothing in the stars a meritocracy going on here in america and you know people are in a position of power and then they try to get things through oh by. the process of legislation the law making and the press of course right now what about the fact that the press that would be really in a position to push back against what you're describing as a horrible piece of legislation this tax cuts their obsession with things like the fake russia gate hoax like i made rachel maddow he turns around every night and she
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always still jumps. just what this what this hoax this russia gate hoax should she be more concerned about pushing back against this what you described as a catastrophic tax bill i thought were tarmoh journalists i'm not quite sure that rachel who it was a journey out well ken who ok fair enough but who who is operating where were where's the press you know jefferson called the press to the fourth estate i paraphrase our you know when he said something to that effect but we don't know that that's a vital part of our nation freedom of the press freedom of speech who's representing those interests i think the traditional print media in a lot of the new online media actually have been doing a great job of reporting on the catastrophic details of the tax bill how unprecedented. the push to quickly move this legislation without a single hearing i think the media's doing their job and i think that's reflected in poll after poll that shows that even though a lot of americans are temporarily going to get some money back in their taxes they
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still don't like the tax bill because it showers the wealthy few multinational corporations with too much of the benefits in your wheel house or the energy sector right so we were started up i talked about how this impacts the energy business specifically and i read the new york times piece there saying on a state by state basis it's unknown because it's a very a lot of variation in the various states but walk us through like what what does this mean actually to the energy industry that there are some energy companies that are treated as sort of inherently monopolistic and so the tradeoff for having a monopoly and therefore being exposed to little risk is that you have to have your profits regulated and so part of your profits are obviously an analysis of your costs and one of those costs are income taxes that you pay so if there is a dramatic change in your corporate income tax liability then that should be reflected in lower rates and therefore lower energy bills. for consumers but that's
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up to regulators to make that determination and my quote the new york times or something to the effect of there are some states that do a very good job of holding these regulated utilities feet to the fire to make sure that consumers are getting the benefits they deserve and there are states that do a terrible job there's also a federal here there's an agency called the federal energy regulatory commission that regulates transmission lines natural gas and oil pipelines and so we're going to see a similar set of proceedings at the federal level to ensure that the benefits that these energy utilities are going to be receiving from trump's corporate tax cut that some of that is going to be forced to be shared with consumers right now let's get into some nitty gritty stuff here that you're in the day to day business your hair in washington your you know work and on behalf of centrally you know in the sector of energy and i guess pushing back against abusive energy monopoly power i
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guess is what you could try and try to do all right so you also gave testimony to congress recently in your testimony you noted that the u.s. energy information administration reported that twenty sixteen experience the largest net increase in generation capacity since two thousand and eleven why is this significant well it's significant in the types of new generation capacity that's coming online we're seeing record amounts of coal and nuclear retirements but what we're seeing and that's what this is what the statistics we're talking about is that we're seeing even more new generation mostly natural gas and renewables and when you combine that with the important fact that the united states energy demand is essentially flat lining and actually shrinking as a share of our gross domestic product that is huge for consumers and for energy markets but what that means is that the financial fortunes of the coal and nuclear industry are fading and they're fading pretty fast and so that's what this whole
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rattle of they're generating more energy. you're right well that's net but when you look at the different types of generation resources coal and nuclear are being fast clip eclipsed by lower cost and easier to deploy resources like natural gas and renewal ok transitioning to natural gas renewables as out as industries are the legacy industries are not making as much money as they were that's right they said they're not happy about it so they're going to the trump administration and last september the. energy secretary rick perry unveiled this crazy plan that basically said you know what renewables are so cheap that they're causing the premature retirement of all of these coal and nuclear base load generation and those retirements are going to result in reliability issues down the road and that's a national security concern so for national security reasons we have to rewrite
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america's energy market rules to force consumers to pay extra for these an economic coal and nuclear units and so this week the federal energy regulatory commission which is the agency in charge of implementing this request by the trump department of energy ruled five to nothing tossing out this rick perry request saying that it didn't have merit and that there was not a factual basis to rewrite rules because he's coming across like. a protection racket right right so so throw it out right so that's not bad you know it's a good thing except now it punts to what's known as the private entities that operate and run america's electric grid many americans don't know this but we essentially have privatized grids and not only do those grids manage the physical movement of electrons across the country but they also set up internal rules where
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policy decisions and rule rewrite. it's our deliberated and so i've called it the privatisation of electricity policy making and so at the same time that first five to nothing ruled that this rick perry requests was crazy and tossed it out they then said well private regional transmission operators what do you guys think about this issue and so we're going to see over the next two months some proposals by the grid operators that might do the same thing that that perry was proposing except dress it up in these ridiculous economic sounding jargon so consider is still a big risk to consumers but you know we won the first round but the battle continues so that the great is made up and if it's a stance a belief or surging surging energy demand they can offload it from different areas of the grid and especially in managing this way like any network that you're trying to manage through our peak efficiency so what is it made up of exactly this this if
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it's a private it's five a corporations and one of these companies what are they make who are they make up the grid how many oh so the biggest one is called p j m which it started in the one nine hundred twenty s. as like a voluntary reliability group stands for pennsylvania jersey maryland but today it stretches from illinois to the mid atlantic coast of the united states including washington they've got all of the grid right and they go right to get all of the pricing on the grid so it's a it's a private membership base corporation but they are officially sort of acting like an umpire the problem is that they are highly susceptible to influence by some of their powerful members and in this case the powerful members are some of the big owners of generation the largest generation owner in p j m for example is a chicago based corporation called exelon and exelon own a huge fleet of aging an economic nuclear reactor how they do during hurricane.
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mian erma well in new england one big nuclear reactor was forced to go offline historically nuclear power plants aren't super reliable during big stress events involving extreme weather we saw during the recent hurricanes a number of the nuclear power plants had to go offline as a precaution because as we saw with fukushima in japan you have to have an on site power system to run all the cooling systems to keep that nuclear reactions stable if you lose access to the grid it's very risky to run only on that separate on site power so as a precaution during big weather events nuclear power plants often go offline ok that's good energetic conversation want to continue to can stay i can only get good if this is this other guys report a mascot or stacy i would like to thank our guests the one and only tyson slocum
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from the public citizen's energy program going to catch us on twitter as kaiser reports on bio. i don't think that any country can push a button and get rid of trade this is far too important to be farmers to political backlash money is a very fine people think and i think it will be very quick before people find ways around it because as i say many may be damaging it might cut it back but the idea that you could do anything nearly even the south is very unlikely. but hope to do something to. put themselves on the line they did accept or reject. so when you're the president and should. want to be christian. back to the right to
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be first to see what before three in the morning can people that i'm interested in the waters of my house. should. still be. going. to. see that latest father gives us something on the other that was poor and then i think. just to please her.


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